Dynamics GP Purchase Order Prepayment

In some business scenario, companies will need to pay a Pre-payment for Purchase Order before the vendor Processes the purchase order. Microsoft Dynamics GP, Purchase Order Prepayments help companies achieve that and it was introduced on GP 2013 and up…

Below are the main steps in Dynamics GP to achieve that…..

1-    Setup: You need to have the appropriate permission to access the purchase order setup screen under

navigate to Purchasing –> Setup –> Purchase Order Processing

In this window, you can select to allow Purchase Order Prepayments at any time as below  

Optionally you could setup password as another control processes to allow prepayment on the system.

You should identify the posting account for the prepayment account default.







2-    Create Purchase Order

Navigate to Purchasing –>Transactions–>Purchase Order Entry

If you enter the prepayment and try to receive the PO, the system wil not allow you until you create and post the prepayment.






3-    Create Prepayment check and post it: Creating the prepayment check and post it

In the “Payables Batch Entry” window, there is now a check box that says, “Purchasing Prepayment Batch.” Select the appropriate checkbook ID and then click Save. and follow the create check process for printing and processing.









4-    Step 4: Receive Pre-Payment

Finally Receive and invoice the Purchase order you will notice that the prepayment will automatically be applied to the invoice. see image below


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